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Marijuana Legalization Efforts Gain Traction: This Week in Cannabis Investing
A Republican state senator in South Carolina just introduced a medical marijuana legalization bill.
The Southeast is warming to the legalization of cannabis, and approval surrounding medical and recreational weed is gaining momentum.
Alabama's licensing process is underway, and efforts for weed legalization in Florida are building. South Carolina is making progress on its medical cannabis legalization program too.
Last week, Republican Senator Tom Davis introduced the South Carolina Compassionate Care Act(opens in new tab), with adjustments to avoid problems that derailed the reform previously. An earlier version of the bill cleared the South Carolina Senate but failed to pass the House floor due to issues related to language on taxes. If the bill passes this time, patients in South Carolina will gain access to cannabis through licensed dispensaries with a doctor's recommendation.
Weed legalization is already supported by most U.S. voters. And in November, a poll released by Winthrop University(opens in new tab) found that 78% of adults in South Carolina, including a majority of Republicans, would like to see medical cannabis reform. An additional 54% of voters were in favor of recreational weed legalization.
S.Korea fines Citadel Securities $10M for stock algorithm trading breaches
These guys are the biggest crooks in trading including Wall Street.
SEOUL, Jan 27 (Reuters) - South Korea's financial regulator has imposed a fine of 11.88 billion won ($9.66 million) on U.S.-based Citadel Securities, saying it disturbed the local stock market with high-frequency algorithm trading.
Reporting by Jihoon Lee; Editing by Lincoln Feast.
Great Day Friday, up 20% on 19M shares
Support is forming with 33 trades, with 28 at the ASK .0006 and 5 at BID .0005.
The last trade of the day, 1k shares, for .50 cents, dump to BiD at .0005 is pure attempt to manipulate the closing price which never works, clearly the entire day was marked with BUYING at the ASK.
The chase will begin soon!!
Tape Paint Job 1k dump .50 Cents
Such foolishness and illegal also, see if trade gets picked by software scans they are using now. Broker will give you a call
Notice how BID builds as ASK goes down
Nearly a one for one shows that those shares on the ASK are MM positions, typically short, and as they get taken out, the BID grows as they are looking to cover those sold short shares.
BID 20M and ASK now 5M
March/April PVSP will have AUDITED FINANCIALS!!!
PLUS we cleared a million dollars of debt as part of the acquisition, cleaned up and created a functional finance and accounting structures, and by end of March/early April Pervasip will also have audited financials. Cleaner, stronger, and ready for more!
Lot of Private Companies want to go Public, Reverse Merger?
Who will be our next Artizen?
Management said it will be a Non Recreational Cannabis company, which could mean focus on Medical or Biotech Cannabis.
The fact that they specifically mentioned not a "Recreational Cannabis Company" make me believe that it will be the Medical side of the business. Still feel that KRTL Biotech which we own 5% Equity Position, could have something to do with the next acquisition. They are making lot of headway in international markets and doing clinical studies on cannabis in Korea, time will tell.
Absolutely, just thinking the same thing! LOL
Yes and it is a Spin Off not an IPO
That was the same Schwab Seller 950K trades
Look at the near close dump, notice the majority of trades were at 950K shares, that we saw a few days ago also. So of the 950K were filled in 2 orders, you can add them up, exactly 950K each time. There were a total of 12 of them, around 11 Million shares.
Those are not conversions, that is retail jumping off the Bridge.
Hoping we run out of sellers, but seems there are always a few left.
Less than 600k had traded until 3:30 when the 16M dump happened again.
In an IPO, only 20 to 30% Equity is sold
When a private company goes public such as in an IPO, the existing investors continue to own 70 to 80 percent of the company, meaning that they offer to the public enough shares to sell 20 to 30 percent of the company.
The same thing is true with PVSP and Artizen. Artizen founders that invest their money and time building a private company with $20 Million in revenue, own 85 percent of the company and Common Shareholders own the remaining 15 percent, which ends up exactly like any IPO. This was a reverse merger as we know, but the end result is no different.
Think about it this way, Artizen basically issued 15% of the companies equity in Common Stock.
Riss simply transferred his 90% ownership to Artizen in Merger
Artizen deal was done with NO Dilution of Common Stock shareholders
Riss has always held Series F and G shares that are convertible into 90% equity in PVSP. Those were used to do the reverse merger and Artizen ended up with 85% ownership which was totally fair as they had the $20 Million business.
It is no different than it ever was for some 15 years or more, same ownership structure for old PVSP, and now Artizen.
Mr. Riss added, "The agreements called for me to surrender my Series E, F and G preferred shares so the Company can pay for the acquisition with the new preferred shares. The Series E shares gave me voting control, while the Series F and G shares are convertible into more than 90% of the Company's issued and outstanding voting and other stock. The new preferred shares issuable in the Artizen acquisition will correspond to 85% of the Company's outstanding equity. We are pleased that the acquisition brings an established business to Pervasip without issuing additional shares of common stock."
Mgt will address market price ASAP 1st Half 2023.
We were trading around .001 in December and Management Shareholder letter said"
"suffice it to say that we do not believe that our current market price accurately reflects the intrinsic value of our business and brands, and we are committed to addressing that circumstance as soon as possible during the first half of next year."
To prevent harmful speculation, our planned changes will involve a series of related transactions that will not include a reverse split.
We will provide more information about our intentions in January of 2023, however, suffice it to say that we do not believe that our current market price accurately reflects the intrinsic value of our business and brands, and we are committed to addressing that circumstance as soon as possible during the first half of next year.
One seller End of Day 16M for $8k LOL Idiot
Less than 600k traded until 3:30 , thought we had all the sellers out, but still some weak hand was still out there.
Artizen Spin Off will have NO Convertible Debt or other Securities.
Holders of Pervasip’s issued and outstanding common shares as of the record date will receive an aggregate of 15,000,000 shares of Artizen common stock, corresponding to 15% of Artizen’s fully diluted issued and outstanding common shares upon completion of the transaction (in addition to retaining their shares in Pervasip).
Likewise, holders of Pervasip’s Series K and other convertible securities will receive an aggregate of 85,000,000 shares of Artizen common stock, the vast majority of which will be subject to lock-up restrictions prohibiting sales prior to Artizen’s realization of material growth and other performance objectives.
Artizen will have 100,000,000 common shares outstanding on a fully diluted basis upon completion of the transaction, with no convertible debt or other securities.
We could set an ALL TIME Volume Record today!
Less than 600,000 shares today at 3PM, and $300 total trades.
Doesn't look like Conversions to me, how about you guys
Told you the Conversions are Toast, put a fork in them, LOL
Watch this move North once people see that the Conversions are really done.
Just Cat and Mouse being played here, everyone wants to get the shares cheaper sitting on BID. That has worked for the past year but coming to an end soon.
We may have to pay the ASK once again!!
On Average, Spin Offs take 6 months or longer
That answers the question why did PVSP announce the Spin Off now and also the fact that the audited financials are key to getting this done.
Management said there would be a "Series of Related Transactions" which to me means PVSP is going to have one or two Operating Companies prior to the Spin Off.
Investment Bankers want PVSP to diversify from just Recreational Cannabis
"Expect a Series of Related Transactions"
From Press Release Shareholder letter:
Engaging investment bankers and other advisors to evaluate the best approach to achieve our local and national strategic plan in a challenging cannabis climate while delivering significant value to our shareholders.
In doing so, and in conjunction with our announced and other acquisition plans, we are finalizing some material structural changes that will simultaneously eliminate dilution from Pervasip’s historical debts and position us to complete acquisitions and raise capital on fair terms with fixed prices that do not put pressure on our stock.
To prevent harmful speculation, our planned changes will involve a series of related transactions that will not include a reverse split. We will provide more information about our intentions in January of 2023, however, suffice it to say that we do not believe that our current market price accurately reflects the intrinsic value of our business and brands, and we are committed to addressing that circumstance as soon as possible during the first half of next year.
Conversions are HISTORY!! Read it and Weep
Trading Float of 10 Million Shares for Artizen - BOOM!!
No Debt, No Convertibles, Fully Audited Financials, Up Listed to OTCQB, Profitable, Revenue $25 to $30 Million, New Financing fixed payment terms, shareholder friendly. BOOM!!
Leaving Stinky Pinks neighborhood forever!
I am sure he will, it is why 6-9 months off
He is not going to do a spin off of Artizen and leave PSVP with no revenues etc. That would make no sense at all. He said they would be looking at NON Recreational Cannabis opportunities.
My bet Paul gets PVSP back brings some of his new companies initially and we go from there.
Tax Neutral
The manner in which a parent company structures the spinoff and divests itself of a subsidiary or division determines whether the spinoff is taxable or tax-free. The taxable status of a spinoff is governed by Internal Revenue Code (IRC) Section 355. The majority of spinoffs are tax-free, meeting the Section 355 requirements for tax exemption because the parent company and its shareholders do not recognize taxable capital gains.
Distributing shares in the spinoff in direct proposition to shareholders equity interest in the parent is what is happening.
Sellers didn't realize they were getting equal shares in Artizen!, LOL
No doubt in my mind that they ran to the exit dumping their shares as they went. Looking at the 100M Monday trading, one dump was for 35M shares, and was lot of Schwab retail 950k a dump as limited to under 1M trade.
Maybe 20 people traded that day, really hard to tell but it was not a major deal. Many here hold 50 to 100M plus so anyone can cause a ripple in the pond if they throw enough large stones, LOL
Market Cap of $2.2 Million for the whole company, generating $20 to $30 Million in revenue this year. Only in Pinkville with no liquidity can this happen.
Take the Gift and don't ask questions, LOL
Audits Need to be Completed
They have addressed it with the spin off of Artizen.
Conversion are DONE!
We need Banking, Tax Reform, and Rescheduling First!
There is a very good chance of getting these issue done in 2023, even if we don/t get legalization done until next year. Would blow cannabis stocks to all time highs in matter of weeks not years. We need to be able to accessing US banking system, as well as write of expenses as every other business in the country does.
Most Cannabis companies would be profitable immediately and it would be off to the races !!
It is going to happen, just a matter of when>
Agreed, but States led repeal of Alcohol Prohibition
Individual States said screw you Fed, and eventually Congress gave up and Prohibition ended. Same thing is going to happen with Cannabis IMO. I believe that the illegal cannabis and drug money is what is funding some of these political scumbags, it is not an accident, just follow the money.
Prohibition in the United States
In the United States from 1920 to 1933, a nationwide constitutional law prohibited the production, importation, transportation, and sale of alcoholic beverages.[1] The alcohol industry was curtailed by a succession of state legislatures, and finally ended nationwide under the Eighteenth Amendment to the United States Constitution, ratified on January 16, 1919. Prohibition ended with the ratification of the Twenty-first Amendment, which repealed the Eighteenth Amendment on December 5, 1933.
$20 Million Plus Revenue, PVSP market cap $2.2 M? LOL!!!
Management projecting over $30 Million Revenue by end of this year. Current depressed cannabis valuations are still 2 to 4 times trailing revenue.
That puts PVSP at $40 to $80 Million the way it sits today. By year end it should be worth $60 to $80 Million, with NO Debt, and NO Conversions.
It certainly is worth a lot more than $2.2 Million Market Cap that the current price is indicating.
Congress Will Attempt to Amend IRS 280E Code Again in Aid of Marijuana Tax Relief
Industry needs to be able to deduct expenses like any other company in business in the US, and it needs to get done ASAP!!
January 10, 2023
7:10 am
Politics
GOP Congresswoman Rep. Nancy Mace recently filed a bill that would provide federal tax relief for marijuana businesses by amending the Internal Revenue Service’s 280E Code. This means that state-legal marijuana industry operators would finally be able to partake of tax deductions applicable to any other business. This is under the guise of a congressional bill seeking to amend the infamous code 280E to bring about marijuana tax relief.
While the text is currently unavailable, it is said to be identical to previously filed versions of the Small Business Tax Equity Act. The bill, which comes as just days remain of the 117th Congress, will eventually provide relief to businesses who are unable to deduct business expenses from their federal tax or receive tax credits.
https://beardbrospharms.com/2023/01/10/congress-will-attempt-to-amend-irs-280e-code-again-in-aid-of-marijuana-tax-relief/
Christmas Shopping Extended this year,
Who would have thunk it? What a gift, just crazy but so be it, bring em!!!
Q1/2023 Cannabis Companies Valued 2 to 4 X Revenue
Do the math, $20 Million Trailing Revenue give PVSP market cap of $40 to $80 MILLION.
We have a market cap of $2.2 Million, LOL
Just remarkable what insane values the PINKs can achieve, one minute your worth $700 Million, the next minute $2 Million.
Price is useless in determine a pinks stock true value and is more a reflection of poor liquidity in these so called markets, which are really just dealer brokers making a market.
We will be out of the Pink Neighborhood soon!!
Same ole Price Manipulation 19 Trades for $12 Each, LOL
Painting the Close again, for the weekend.
Another reason to get off this Pinks!!
Too funny, seriously, 25m traded, $12 Grand Total. LOL
Yea MM are shaking in their boots over PVSP shares, LOL, LOL
Must be at the top of their trading volume, figure each MM could be holding $1,000 bucks, LOL
Sorry you are sooo wrong.
The debt conversions are ALL FIX share amounts. Debt holder gain nothing by shorting FFI fixed Shares, except lower price for their shares.
Your argument of Short Selling is used in the toxic financing debt where they more and more shares have to be issued to cover the debt amount. PVSP has NONE of that type debt.
PVSP debt holders are consider friendly, and NO not all debt holders are PIGS.
IMO New Funding is already in place, after the Spin Off
Management indicated that after consulting with Investment Bankers, and others,the Spin Off was determined to be the best way of unlocking shareholder value in the Artizen holding and for the company to meet its financial objectives they outlines recently in that 2 year plan.
With a few acquisitions announcement sstock will pop and not look back.
A clean balance sheet and $20 to $30 Million in revenue, along with a positive growth track record will do wonders for Bankers. New financing will be at terms that are friendly to shareholder according to the CEO post.
Conversions are done now with Spin Off of Artizen
IMO the conversion done, the Spin Off offers the debt holder much more value than dumping in the trips.
This is not conversions, retest of Low !!
Weak hands are "Bridge Jumping". let them, more cheap shares for the real shareholders!!
All those 950,000 dumps are Schwab retail, they limit trades to under 1m shares, easy to spot.
IMO PVSP will announce New Deals soon, before Artizen Spin Off
German said Non Cannabis Opportunities
PVSP Will Explore NEW Opportunities not Cannabis related!!
Pervasip Corp
@PervasipC
$PVSP 3. What will happen to Pervasip?
None of the current capital structure will change! German Burtscher remains as the CEO and Chairman of Pervasip and with the same executive team.
What we will do though is focus on other opportunities (not recreational cannabis) and exploit those and build new value in Pervasip, which now will have fully audited financials, a well-constructed finance and operations structure, and numerous opportunities to create value for its loyal shareholders.
New Jersey Senate Committee Approves Bills To Let Marijuana Businesses Claim State Tax Deductions
New Jersey Senate Committee Approves Bills To Let Marijuana Businesses Claim State Tax Deductions As Partial 280E Workaround
A New Jersey Senate committee approved a pair of bills on Thursday that would allow licensed marijuana businesses to deduct certain expenses on their state tax returns, a partial remedy as the industry continues to be blocked from making federal deductions under Internal Revenue Service (IRS) code known as 280E.
The Senate Budget and Appropriations Committee took up companion measures from its chamber and from the Assembly, making them identical before advancing them in a unanimous vote.
The version from Assemblymember Annette Quijano (D) passed that full chamber in October. It was previously amended in committee, with members agreeing to remove an earlier provision that would’ve made it so only cannabis licensees with gross receipts less than $15 million would be eligible for state tax deductions.
The Senate version was amended on Thursday to include those Assembly revisions before both were approved together.
While many state tax policies simply mirror federal law, the legislation says that, for the purposes of the New Jersey’s tax code, a licensed cannabis business’s gross income “shall be determined without regard to section 280E of the [federal] Internal Revenue Code.”
When it comes to federal tax policy, those businesses would still be subject to the IRS 280E code, which precludes entities that illegally sell Schedule I or II drugs from making key tax deductions in their federal filings. But if the New Jersey proposal is enacted, the licensed cannabis industry could at least see some state-level relief.